What a termination letter is — and how to end employment lawfully in Kenya
A termination letter formally ends an employee’s employment. It is the final, and most legally sensitive, document in the process — because Kenyan law protects employees against unfair termination, and this letter is where the reason, the procedure, the notice and the final dues are recorded. Getting it wrong is one of the most expensive mistakes an employer can make.
Under the Employment Act, 2007, a termination is fair only if there is a valid reason (section 43) and a fair procedure (section 41) — the employee must have been told the reason and given a chance to respond before the decision. The letter should reflect that: it states the reason, references the hearing, and sets out the notice being given (section 35) or the payment in lieu of notice (section 36). For gross misconduct, summary dismissal is possible under section 44 — but only after a fair hearing, not instead of one.
The letter must also deal with the money and the exit: final dues (salary to the last day, accrued leave, statutory entitlements, less lawful deductions), the last day of work, the return of company property, and the certificate of service that section 51 entitles every departing employee to receive. A clean termination letter protects both sides and leaves nothing to argue about later.
This tool helps you get the structure and the statutory references right. Termination is high-risk — for a contested case, a redundancy, or anything unusual, have an advocate or HR professional review the specifics before you issue it.
What a termination letter should include
- ◆The employee’s role and a reference to the disciplinary process/hearing
- ◆The valid reason for termination, stated plainly
- ◆The notice given (s.35) or payment in lieu (s.36) — or, for gross misconduct, summary dismissal (s.44)
- ◆The last day of employment
- ◆Final dues: salary to the last day, accrued leave, statutory entitlements, less lawful deductions
- ◆The certificate of service (s.51) and the return of company property
Common mistakes to avoid
- ✕Terminating with no stated reason, or a reason that wasn’t put to the employee
- ✕Skipping the hearing — a valid reason without fair procedure is still unfair termination
- ✕Getting the notice wrong — too little, or none where notice was due
- ✕Withholding final dues or the certificate of service, both of which are the employee’s right
Questions
What makes a termination fair in Kenya?
Two things together: a valid reason (section 43 — conduct, capacity, or the operational needs of the business) and a fair procedure (section 41 — the reason explained to the employee and their representations heard before the decision). Missing either makes the termination unfair, however strong the other.
How much notice must I give?
For monthly-paid employees, section 35 requires at least 28 days’ (one month’s) notice unless the contract provides for more; during probation it is seven days. Under section 36 you can pay salary in lieu of notice instead of requiring the employee to work it.
Can I dismiss someone instantly for gross misconduct?
Summary dismissal (no notice) is lawful for gross misconduct under section 44 — but only after a fair hearing. “Summary” means without notice, not without process. Dismissing on the spot with no hearing is the commonest cause of unfair-dismissal awards.
What is a certificate of service?
Under section 51, an employee who leaves after more than four weeks’ service is entitled to a certificate of service stating the period worked and the nature of the work — regardless of how the employment ended. It must be issued; it is not a reference and shouldn’t carry adverse comment.
Is redundancy the same as dismissal for misconduct?
No. Redundancy (termination on operational grounds) has its own requirements — notice to the employee and the labour officer, fair selection, and severance of at least fifteen days’ pay per completed year of service under section 40. If this is a redundancy, treat it as such and take advice; this general termination letter is not tailored to it.
This tool is free to write and preview, and gives you an editable draft — adjust the wording to your situation. Downloading a clean PDF without the small watermark is KES 150 in Kenya (a one-off) and free elsewhere. It is a template, not legal advice; for a contested or high-value matter, have an advocate or HR professional review the letter before you issue it.